"New Car, and Your Money Back in 5 or 6 Years!"
Sounds great, doesn't it, but is it possible?
This could be achieved, using the "Double Your Money in 5 Years" Time Deposits, but in practise, would mean you covering any Deposit on such a car, and depositing funds, rather more than the cost of whatever car you want to buy?
However it is a better way to buy a car than taking money out of you Bank Deposit to buy a vehicle for CASH (IMHO) - here's why:-
- Dealers don’t seem to offer discount for CASH, (well not here in Cebu, on latest models, anyway).
- Once the car leaves the showroom, having been bought for CASH (and insurance sorted, and LTO fees, number plates, delivery charges etc), it has already depreciated, and quite considerably usually.
- Try selling, and almost impossible, to get back what you paid for it!
- Taking money from the Bank, lowers you capital held, and perhaps you ’status’ with the Bank.
Well it my case, it was utilising the - 6 Year ‘Hybrid’ CTD from certain Rural Banks,
Rather than withdrawing funds from a commercial bank, to buy a car, for cash, I ‘borrowed’ against the funds, I had on deposit.
I borrowed Php1M, and placed these as Php250K deposit, in my name, Php250K in my wifes name. We also opened a ‘Joint’ account with me and my wife, for another Php250K, and also with me and my 21 year old step-daughter.
So 4 x Php250K deposits placed in 6 Year Hybrid CTD, all covered by PDIC insurance.
With this ‘Hybrid’ TD, you get the interest for months 61-72, up front, in ‘advance’.
So we received Advance Interest of Php200K Cash (this being 20% of Php1M) immediately!
The vehicle I bought, was a Hyundai 1.5CRDi VGT, costing Php700K, in Cebu.

The 80% Balance on the car was funded via a 48 month AutoLoan of Php15,262 a month, in arrears.
Since the monthly Interest from the Php1M 6 Year ‘Hybrid’ CTD, was to be Php16,666.67 a month, this easily covered that. The balance could be used for vehicle services or saved up to cover the Comprehensive Insurance renewal.
So at the end of 6 years, I have:-
- 6 year old vehicle, (fully serviced, insured, and maintained)
- Extras:
- Anti-Corrosion Warranty,
- Hi Level Spoiler/Brake Lights,
- Remote Central Locking & Alarm system - Php200K (interest from months 49-60),
- Php1M refunded Deposit.
Seemed a better deal to me, than having withdrawn Php700K from a commercial Bank, to buy the Hyundai Matrix 1.5CRDi VGT, for cash!
The point here is that it can be done - because I am doing it.
1 comment:
Holy crap! you make me smile, you are genius! I hope you like beer coz next time im in cebu i owe you a few.
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